kept growing in 2009, according to a new study, potentially adding
another hardship to retirees already hurt by financial losses amid the
recession.
The survey, by Richmond, Va.-based insurer Genworth
Financial Inc., says that except for home-based health care, the costs
of long-term care are also poised for steady increases. The cost of
labor is a key factor driving the price of care at facilities, though
that has abated somewhat because of the availability now of workers as
unemployment has risen and higher retention rates.
“The labor
required in a facility is generally more skilled in nature,” said Beth
Ludden, senior vice president of long-term care product development at
Genworth.
The study showed that the average annual cost for a
private room in a nursing home is $74,208, or $208 per day, a 4.7
percent boost over the past year and 4.3 percent annually over the past
five years. The costs range from $50,594 in Louisiana to $125,925 in
Connecticut, the highest in the continental U.S. Overall, the Northeast
is the most expensive region of the nation for nursing homes. The
average for Ohio is $71,472.
The cost for a one-bedroom unit in
an assisted living facility is $33,903 annually, or $2,825 monthly,
marking an increase of 1.4 percent over 2008 and 4.7 percent annually
over the last five years. North Dakota has the lowest annual costs at
$25,049, with Massachusetts the highest in the continental U.S., at
$55,137. Again, the Northeast led the nation in costs. Ohio’s average
is $35,845.
The recession highlights the expense of long-term
care, Ludden said, with many people having counted on assets such as
their homes to help pay for the costs. Many of those assets are now
worth less for many people. The median sale price for a house fell 12
percent in March, according to a recent Commerce Department report.
“Historically
people have thought they would have an asset to liquidate to pay for
it, but those assets may now be devalued,” she said.
A bright
spot in the company’s survey is the relatively flat cost of in-home
care. The hourly cost for in-home care for non-Medicare certified
workers rose a half-percent to $18.50 from a year ago and grew 1.7
percent annually over the past five years. Louisiana was the least
expensive annually while Massachusetts topped the list.
More than two-thirds of the over-65 population will eventually need some form of long-term care, Ludden said. For more, read the story.
________________________________________________________________
Robert
W. Carter, Jr. is a Virginia attorney whose law practice is dedicated
to protecting the rights of the victims of nursing home and assisted
living neglect and abuse in Richmond, Roanoke, Norfolk, Lynchburg,
Danville, Charlottesville, and across Virginia.
